Full Interview: Anduril CEO Brian Schimpf on $1B+ Revenue & Still Doubling
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
Brian Schimpf, Co-Founder and CEO of Anduril, discusses the defense technology company's remarkable growth from startup to a 7,000-employee organization with over $1 billion in revenue that continues to double year-over-year. (02:23) The conversation explores Anduril's expansion from autonomous systems into a comprehensive defense portfolio including autonomous aircraft, cruise missiles, electronic warfare, and networked sensing platforms, all unified by their Lattice software platform. (08:01) Schimpf addresses the changing global security landscape, manufacturing challenges in the U.S. defense industrial base, and how nearly $1 trillion in defense spending is actually allocated across personnel, infrastructure, and legacy system maintenance rather than new procurement. (13:14) The discussion also covers Anduril's international expansion strategy, particularly their successful partnership with Australia on the GhostShark autonomous underwater vehicle program.
• Main themes: Defense industry transformation, autonomous warfare systems, global security challenges, manufacturing innovation, and scaling high-tech defense capabilities in an increasingly unstable geopolitical environment.Speakers
Brian Schimpf
Brian Schimpf is the Co-Founder and CEO of Anduril Industries, a defense technology company valued at over $30 billion. He previously worked as an engineer at Palantir Technologies, where he learned critical lessons about talent management and organizational culture that he now applies at Anduril. Under his leadership, Anduril has grown to approximately 7,000 employees with over $1 billion in revenue that continues to double annually, while expanding from autonomous systems into a comprehensive portfolio of defense capabilities including autonomous aircraft, cruise missiles, and electronic warfare systems.
Key Takeaways
Focus on Autonomous, Distributed Battlefield Systems
Schimpf emphasizes that Anduril's core thesis revolves around preparing for "a more disconnected, more autonomous battlefield" rather than chasing short-term opportunities. (08:01) This long-term vision drives their product development strategy and ensures they're building capabilities that will be relevant for the military's future needs. The company has developed a unified software platform called Lattice that integrates sensors, compute, networking, and communications systems, enabling them to rapidly deploy new capabilities without reinventing components from scratch. This strategic approach allows them to maintain a competitive advantage by building a comprehensive toolkit that can be applied across multiple product lines, from small autonomous systems to fighter jets.
Design for Production, Not Just Capability
A critical insight Schimpf shares is the importance of designing defense systems with manufacturing scalability in mind from the beginning. (23:33) He contrasts this with the traditional defense approach of the past 40 years, which focused on creating the "most high-end Swiss watch of a weapon" without considering mass production capabilities. Anduril deliberately designs products that can leverage existing commercial manufacturing capacity rather than requiring specialized defense-only production lines. This philosophy enables them to achieve cost advantages while maintaining the ability to scale production rapidly when needed, addressing one of the critical weaknesses in the current U.S. defense industrial base.
Embrace Accountability-Based Pricing Models
Schimpf advocates for pricing models where companies take on more risk and are held accountable for delivery, preferring contracts where "if it doesn't work, we don't get paid." (10:06) This contrasts sharply with traditional defense contracting where the government assumes most risks and contractors receive fixed profit fees regardless of performance. Anduril actively seeks fixed-price contracts with sustained service fees for upgrades, creating a win-win scenario that incentivizes continuous improvement and actual results. This approach not only makes Anduril a better company by forcing accountability but also delivers superior outcomes for government customers.
Prioritize Creative Talent Over System Optimizers
Drawing from his experience at Palantir, Schimpf emphasizes the critical importance of hiring truly creative talent rather than people who are merely good at optimizing existing systems. (26:38) He notes that while brilliant, creative people can be "super opinionated" and "kind of aggressive," they're essential for tackling the constant innovation required in defense technology. The challenge is that many scaling companies inadvertently filter out creative talent in favor of people who work well within established systems. For Anduril, which is constantly inventing new products and navigating complex geopolitical challenges, maintaining a culture of "artistry and meritocracy" is essential for continued success.
Leverage Global Partnerships for Market Expansion
Schimpf outlines a sophisticated international expansion strategy that recognizes changing global security dynamics and supply chain realities. (17:31) With countries like Australia facing decade-long gaps in military capabilities due to U.S. production backlogs, Anduril creates partnerships that provide immediate solutions while building local engineering and production capacity. The Australia GhostShark program exemplifies this approach - they split development costs 50/50, delivered the first production unit within 30 days of signing the production contract, and established local capabilities. This model addresses both countries' need for assured supply and economic benefit while maintaining alignment with U.S. strategic interests.
Statistics & Facts
- Anduril has grown to approximately 7,000 employees and continues to double revenue annually, with over $1 billion in current revenue. (02:23) Schimpf noted this growth has exceeded his expectations, putting them about 5-6 years ahead of where he thought they'd be at this point.
- More than half of the nearly $1 trillion U.S. defense budget goes to personnel costs, facilities, and military construction rather than new technology procurement. (13:14) Additionally, sustaining legacy technologies like maintaining aircraft and ships represents a significantly higher cost than actual procurement spending.
- Europe is projected to spend approximately four times the amount of procurement that the U.S. will over the next five years, representing a massive military buildup. (22:10) This shift is driven by deteriorating security situations and longer U.S. production backlogs, with some Patriot missile systems having 15-year delivery timelines.
